We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Will US dollar lose its role as the global reserve currency before 2050 - Essay Example

Comments (0)
For approximately seventy years to date, economies have relied on the US Dollar as the world’s reserve currency, as a standard unit of accounts, for exchange rates and to store value. Decades down the line, most governments have purchased the dollar as securities and acquired…
Download full paper
Will US dollar lose its role as the global reserve currency before 2050
Read TextPreview

Extract of sample
Will US dollar lose its role as the global reserve currency before 2050

Download file to see previous pages... There is a tendency among governments and individuals to diversify by storing the value of their wealth in other dominant currencies, other than the dollar or converting them into commodities. The BRICs development bank, weakening dollar trend, increased US budget deficit, emergence of alternative contender currencies, and shifting pricing away from the dollar elaborates on the serious threat the US dollar faces, in its position as the global reserve currency.
The US Dollar has served as the dominant and world reserve currency for about seventy years today, since the adoption of the system back in the 1940s. Over the years, it gained acceptance and increased use in international transactions and by governments’ central banks for purposes of storing value, exchanges and invoicing transactions. It brought numerous advantages to the governments across the world, and especially the US citizens, whose purchases of goods or services have been at much cheaper rates compared to foreign nations. Some countries went on to peg their currencies to the dollar, but they have experienced the risks besides the benefits of the act. Though still a global reserve currency, the US dollar has been faced by numerous challenges towards the end of the 20th century and the past one decade. Inclusive to this are the exposed weakening US dollar, depreciated dollar and risk of volatility, emergence of challenging currencies to the dollar, changing monetary institution and dollar pricing, and diversification against the dollar. Though a debatable issue, the US Dollar is more likely to lose its role as the global reserve currency by 2050.
It appears that countries are slowly changing their currencies in trading of products even at the international level. Where dollars have been used, other currencies are taking control. For example, most wise and even rich people have studied the behavior of the ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
Potential Role of The Yuan as the New Reserve Currency
According to the paper, the U.S. economy is straddled by a large current account deficit and foreign debt, and this dollar’s volatility have led other countries to believe that the dollar may no longer be stable reserve currency. This essay will try to determine whether a shift to the yuan is feasible in ten years as a replacement for dollar.
15 Pages(3750 words)Essay
Role of currency futures in risk management
Multinational corporations who have denominations in different currencies are largely exposed to foreign exchange risk and they need to eliminate the impact of severe losses due to adverse movements in foreign exchange rates. Various other forms of managing currency risk have been compared with currency futures to determine that which form is the most credible one.
10 Pages(2500 words)Essay
Fiat Currency and its Role in the Global Economy
This currency is based on the national currencies of the 20 largest national economies measured by gross domestic product (GDP). The main understanding is that the implementation of the Wocu would alleviates political currency manipulations and also should smooth trading idiosyncracies caused by investors and political entities; ultimately these measures would reduce currency volatility.
4 Pages(1000 words)Essay
Factors Influencing Exchange Rate Between the US Dollar and Euro
As Rahn (2003) points out, in the place of the 80 cents one had to pay for each euro in 2009, presently, one has to pay 1.24 dollars per euro. While some scholars argue that a further fall is in the pipeline, a rational assumption is that as dollar already reached its minimum, its value is likely to improve in the coming years.
3 Pages(750 words)Essay
Dollar Instability as World Reserve Currency
This dominance has been of tremendous benefit for the financial system of the U.S. and her consumers. The U.S. government has gained tremendous influence and power around the world because of use of the dollar. Today, the U.S. dollar accounts for more than 60% of foreign currency reserves in the world.
3 Pages(750 words)Essay
Comparative Study of US Dollar and Euro
Introduction The development of economies of countries worldwide is primarily depended on their potentials to promote their currency in regard to global trade transactions. US Dollar is used for measuring the value of petroleum and gold, goods that are of primarily importance for global economy.
8 Pages(2000 words)Essay
Chinese Yuan vs. US Dollar
The use of the Chinese Yuan as the legal tender and its pegging against the US dollar in the exchange markets contributed to the economic rise in the country. The Chinese Yuan is also referred to as the Renminbi that forms the core foundation of trading arrangements between China and the US (Zhang 2004).
8 Pages(2000 words)Essay
How should the International Financial System be changed (legally and politically) so that the burden of the dollar as the main reserve currency for the world d
The collapse of US housing bubble and once again brought the pessimists out in the open and they are predicting collapse/ crash of US political and economic domination. In a small measure growth and stability of Euro has given the central banks an alternative to the dollar.
4 Pages(1000 words)Essay
Global currency
It examines the advantages of a US business trading in South Africa and also, holding assets in US dollars instead of South African Rands Generally, the US Dollar is stronger then the South African Rand. This is because
3 Pages(750 words)Essay
Examine a foreign currency TUR for Turkey and provide an analysis of that currency against the US Dollar over the 5-year period ending with 2010
An Exchange-traded fund is in hold of assets such as commodities, bonds, trades, and stocks that are closer to the net value of the assets in the progress of trading day. Most ETFs track an index that includes bond index or stock index. ETFs might be attractive in a way as
4 Pages(1000 words)Essay
Let us find you another Essay on topic Will US dollar lose its role as the global reserve currency before 2050 for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us